State of Illinois
91st General Assembly

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 1        AN ACT to amend the Illinois Pension Code and  the  State
 2    Mandates Act.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Sections 7-142 and 7-144.3 as follows:

 7        (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
 8        Sec. 7-142.  Retirement annuities - Amount.
 9        (a)  The  amount of a retirement annuity shall be the sum
10    of the following, determined in accordance with the actuarial
11    tables in effect at the time of the grant of the annuity:
12             1.  For employees with 8 or more years  of  service,
13        an  annuity  computed pursuant to subparagraphs a or b of
14        this subparagraph 1, whichever is  the  higher,  and  for
15        employees  with  less than 8 years of service the annuity
16        computed pursuant to subparagraph a:
17                  a.  The monthly annuity which can  be  provided
18             from  the total accumulated normal, municipality and
19             prior service credits, as of the attained age of the
20             employee on the date  the  annuity  begins  provided
21             that  such annuity shall not exceed 75% of the final
22             rate of earnings of the employee.
23                  b.  (i) The monthly annuity  amount  determined
24             as  follows by multiplying (a) 1 2/3% for annuitants
25             with not more than 15 years or (b) 1  2/3%  for  the
26             first  15 years and 2% for each year in excess of 15
27             years for annuitants with more than 15 years by  the
28             number of years plus fractional years, prorated on a
29             basis  of months, of creditable service and multiply
30             the product thereof by the employee's final rate  of
31             earnings.
                            -2-                LRB9110543EGfg
 1                  (ii)  For  the  sole  purpose  of computing the
 2             formula (and not for the purposes of the limitations
 3             hereinafter stated) $125  shall  be  considered  the
 4             final  rate of earnings in all cases where the final
 5             rate of earnings is less than such amount.
 6                  (iii)  The   monthly   annuity   computed    in
 7             accordance  with  this  subparagraph  b,  shall  not
 8             exceed  an  amount equal to 75% of the final rate of
 9             earnings.
10                  (iv)  For employees who have less than 35 years
11             of service, the annuity computed in accordance  with
12             this  subparagraph  b  (as reduced by application of
13             subparagraph (iii) above) shall be reduced by  0.25%
14             thereof  (0.5%  if  service  was  terminated  before
15             January  1, 1988) for each month or fraction thereof
16             (1) that the employee's age is less than  60  years,
17             or  (2)  if  the  employee  has at least 30 years of
18             service credit, that the employee's  service  credit
19             is  less  than  35  years, whichever is less, on the
20             date the annuity begins.
21             2.  The annuity which can be provided from the total
22        accumulated additional credits as of the attained age  of
23        the employee on the date the annuity begins.
24        (b)  If  payment  of  an  annuity  begins  prior  to  the
25    earliest  age  at which the employee will become eligible for
26    an  old  age  insurance  benefit  under  the  Federal  Social
27    Security Act, he may elect that  the  annuity  payments  from
28    this fund shall exceed those payable after his attaining such
29    age  by  an  amount,  computed  as determined by rules of the
30    Board, but not in excess of  his  estimated  Social  Security
31    Benefit,  determined as of the effective date of the annuity,
32    provided that in no case shall  the  total  annuity  payments
33    made by this fund exceed in actuarial value the annuity which
34    would have been payable had no such election been made.
                            -3-                LRB9110543EGfg
 1        (c)  The  retirement annuity shall be increased each year
 2    by 2%, not compounded, of  the  monthly  amount  of  annuity,
 3    taking  into consideration any adjustment under paragraph (b)
 4    of this  Section.  This  increase  shall  be  effective  each
 5    January  1  and  computed  from  the  effective  date  of the
 6    retirement annuity, the first increase  being  .167%  of  the
 7    monthly  amount times the number of months from the effective
 8    date to January 1.  Beginning January 1, 1984 and thereafter,
 9    the retirement annuity shall be increased by  3%  each  year,
10    not compounded; except that beginning January 1, 2001, in the
11    case  of  a  retirement  annuity  that has been calculated in
12    whole or in part under Section 7-142.1, the increase provided
13    under this subsection shall be based upon the  entire  amount
14    of annuity payable at the time of the increase, including any
15    increases   previously   received   under   this  subsection,
16    regardless of whether the annuitant  was  in  service  on  or
17    after  the  effective date of this amendatory Act of the 91st
18    General Assembly.
19        This increase shall not be applicable to  annuitants  who
20    are not in service on or after September 8, 1971.
21    (Source: P.A. 91-357, eff. 7-29-99.)

22        (40 ILCS 5/7-144.3) (from Ch. 108 1/2, par. 7-144.3)
23        Sec. 7-144.3. Supplemental benefit payment.
24        (a)  A  supplemental benefit payment, consisting of a sum
25    calculated as provided in subsection (c), shall be payable to
26    each  eligible  retirement  annuitant  and  surviving  spouse
27    annuitant on July 1, 1993, and on  each  subsequent  July  1;
28    except   that   if   this  Code  is  amended  to  change  the
29    uncompounded annual increase in retirement annuity granted in
30    subsection (c)  of  Section  7-142  to  a  compounded  annual
31    increase,  no  supplemental  benefit shall be paid under this
32    Section on any July 1 occurring on  or  after  the  effective
33    date  of  that amendment.  However, the compounding of annual
                            -4-                LRB9110543EGfg
 1    increases for sheriff's law  enforcement  employees  by  this
 2    amendatory   Act  of  the  91st  General  Assembly  shall  be
 3    disregarded for the purposes of this subsection.
 4        The amount of the supplemental  benefit  payment,  and  a
 5    person's  eligibility  to  receive  the  supplemental benefit
 6    payment, shall be redetermined for each  year  in  which  the
 7    benefit is payable.
 8        (b)  To  be  eligible  to  receive a supplemental benefit
 9    payment, a person must be entitled to  receive  a  retirement
10    annuity or surviving spouse annuity from the Fund on the July
11    1  supplemental  benefit  payment  date,  and  must have been
12    receiving  that  annuity  during  each  of  the   12   months
13    immediately  preceding  that  date;   except that a surviving
14    spouse annuitant whose surviving spouse  annuity  began  less
15    than  one year before the July 1 supplemental benefit payment
16    date shall be eligible if  the  deceased  spouse  received  a
17    retirement  annuity  from the Fund during the period from the
18    previous July 1 until  the  start  of  the  surviving  spouse
19    annuity.
20        (c)  The amount of the supplemental benefit payment shall
21    be determined by the Board as follows:
22             (1)  The  total  amount available for the payment of
23        supplemental benefit payments under this Section  in  any
24        year  shall  be  0.62%  of  the last annual participating
25        payroll  for   all   participating   municipalities   and
26        participating   instrumentalities   in   the   Fund,   as
27        determined and reconciled by the Fund.
28             (2)  The  amount of the supplemental benefit payment
29        to each eligible person shall be a portion of  the  total
30        amount  available  under  paragraph  (1),  equal  to that
31        portion of the total amount payable by the  Fund  to  all
32        eligible  persons  for  retirement  and  surviving spouse
33        annuities in the June preceding the July  1  supplemental
34        benefit  payment  date,  that  is payable to the eligible
                            -5-                LRB9110543EGfg
 1        person in that month.
 2             (3)  Notwithstanding paragraph (2),  the  amount  of
 3        any  supplemental  benefit  payment  paid to an annuitant
 4        under  this  Section  shall  not   exceed   any   benefit
 5        limitations  established  by  the  federal government for
 6        qualified public pension plans.
 7    (Source: P.A. 87-850.)

 8        Section 90.  The State Mandates Act is amended by  adding
 9    Section 8.24 as follows:

10        (30 ILCS 805/8.24 new)
11        Sec.  8.24.  Exempt  mandate.  Notwithstanding Sections 6
12    and 8 of this Act, no reimbursement by the State is  required
13    for  the  implementation  of  any  mandate  created  by  this
14    amendatory Act of the 91st General Assembly.

15        Section  99.  Effective date.  This Act takes effect upon
16    becoming law.

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